US-based PerkinElmer has signed an agreement to sell its Applied, Food and Enterprise Services businesses to New Mountain Capital for $2.45bn in cash.

Under the terms of the deal, PerkinElmer will receive $2.30bn at closing and $150m will be payable contingent on the exit valuation New Mountain Capital receives on a sale or other capital events associated with the business.

Upon completion of the transaction, PerkinElmer’s operations will include Life Sciences and Diagnostics businesses.

Together, these businesses are anticipated to generate about $3.3bn in sales this year, with around 80% of that coming from repeat customers, PerkinElmer said.

Expected to be completed by the first quarter of 2023, the transaction is subject to regulatory approvals and other customary closing conditions.

Upon completion, the Analytical, Food, and Enterprise Services businesses under its new owners are anticipated to continue using the PerkinElmer name and brand.

The Life Sciences and Diagnostics businesses will change their names and stock tickers, which will be disclosed later.

The existing PerkinElmer senior management team will remain in charge of the science-based Life Sciences and Diagnostics Company, which will focus on accelerating customer-driven innovations that will lead to faster growth, increased profitability, and an overall best-in-class financial profile, said the firm.

PerkinElmer president and chief executive officer Prahlad Singh said: “Today’s announcement is a pivotal step in the significant portfolio transformation we have been executing on over the last several years.

“Following the close of the transaction, we will be a pure-play, high growth, high margin Life Sciences and Diagnostics company with a unique scale.

“The company’s increased financial strength will support accelerated investment into attractive end markets across science and disease, and drive advanced research, discovery, and improve global health.”

Goldman Sachs is serving as exclusive financial advisor and WilmerHale is serving as lead legal counsel to PerkinElmer on the transaction.

Jefferies is serving as exclusive financial advisor and Simpson Thacher & Bartlett is serving as lead legal counsel to New Mountain Capital.